MetaPro Systems is a start-up company that makes connectors for high-speed Inter

Question

MetaPro Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $105 for each connector and fixed costs of $8,000 per month. MetaPro's static budget predicted production and sales of 100 connectors in August, but the company actually produced and sold only 73 connectors at a total cost of $22,000 MetaPro's sales volume variance for total costs is 0 A $6,335 F. O B. $2,835 F O c. $6,335 U O D. $2,835 U. Click to select your answer

Explanation / Answer

Answer is option D $2835 U

Sales volume variance for total cost = (Actual units produced - Budgeted units) * variable cost = (73-100)*105 = -2835 =2835 Unfavorable

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